Saint John Office Figures H2 2023

February 7, 2024 5 Minute Read

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    Vacancy increased over the second half of 2023 but remains below the 5-year average of 22.1%.

    Class A assets has seen vacancy steadily increase since H1 2023, with rental rates now beginning to respond to decreased demand. In the face of economic headwinds, higher quality, and high cost, space is being returned to market as cost efficiency is prioritized.

    Despite strong negative net absorption recorded in H2 2023, the year ended with a cumulative 40,330 sq. ft. of positive net absorption.

    Class B assets posted the strongest year with a cumulative net absorption of 60,698 sq. ft. Although the later half of the year saw space come to market outweigh positive leasing activity, a strong H1 2023 led to the most positive year recorded since 2011.

    Average net asking rents have continued to grow as high-quality space is brought to market, with the overall rate now sitting at $13.88 per sq. ft.